You are creating a business plan to add an outpatient MRI located on Local Hospital campus. This plan is being submitted to senior leadership of Local Hospital for consideration.

Business Plan Format

Organizational Plan - This will talk about how you will structure as far as FTE's, Leadership, and how your proposed service ties into the mission of the hospital.

General Assumptions

Types of assumptions required for the financial portion of a business plan typically include answers to the following questions (Example of Typical Income Statement Assumption Information Requirements):

What types of revenue?

How many services will be offered to produce the revenue? (per month)

How much labor will be required? (FTEs)

What will the labor cost?

How many and what type of supplies, drugs and/or devices will be required to offer the service?

What will the supplies, drugs and/or devices cost?

How much space will be required?

What will the required space occupancy cost?

Is special equipment required?

If so, how much will it cost?

Is staff training required to use the special equipment?

If so, how much time is required, and what will it cost?

Identify how many of the assumption items listed in the example above can be found incorporated into your business plan.

Specific Assumptions

Use the following information to fill in the Excel Sheet loaded in your discussion forum. It will calculate a lot of the information that is being asked. You just need to enter this in the sheet, and can use part of it for your final submission.

Capital Expenses:

Medical Equipment - $1,600,000

Construction - $250,000

Furniture - $30,000

IT System - $50,000

Contingency 10,000

Year One Volume:

2,800 exams

$485 net revenue per exam

Organizational Structure:

1 Manager - $60 per hour

1.5 MRI Technologists - $40 per hour

2 Receptionists - $15 per hour

The manager reports to the existing Director of Operations, who reports to the CEO (already existing, so no cost)

Expenses:

Medical Supplies per unit - $17.50

Other Supplies per unit - $6

Purchased Services (repair contracts for equipment) - $180,000 yr

Marketing - $45,000 yr

Licenses - $10,000 yr

Rent - $75,000 yr

Utilities - $8,000 yr

What would be the orgizational plan for the above (needs to be about a page long)?

TEAM 6: LOCAL HOSPITAL MRI PROPOSAL PROGRAM: Local Hospital MRI START DATE January 1st CAPITAL INVESTMENTS BASE FUNDING FUTURE FUNDING CAPITAL FUNDS REQUIRED: Year 1 Year 2 Year 3 Year 4 Year 5 Equipment - Medical Equipment - Non-Medical Construction/Renovation1 Furnishings Information Systems Contingency 30,000 50,000 Total Capital Funds Required S 1,940,000S INCREMENTAL STATISTICAL FORECAST PATIENT / PROCEDURE VOLUME Year 1 Year 2 Year 3 Year 4 Year 5 2,971 2,971 3,060 3,060 MRI Exams 2,884 2,884 3,151 3,151 Total MRI Volume 2,800 ESTIMATED NET REVENUE PER PROCEDURE MRI Exams 500 s 515 530 546 TEAM 6: LOCAL HOSPITAL MRI PROPOSAL PROGRAM: Local Hospital MRI START DATE January 1st CAPITAL INVESTMENTS BASE FUNDING FUTURE FUNDING CAPITAL FUNDS REQUIRED: Year 1 Year 2 Year 3 Year 4 Year 5 Equipment - Medical Equipment - Non-Medical Construction/Renovation1 Furnishings Information Systems Contingency 30,000 50,000 Total Capital Funds Required S 1,940,000S INCREMENTAL STATISTICAL FORECAST PATIENT / PROCEDURE VOLUME Year 1 Year 2 Year 3 Year 4 Year 5 2,971 2,971 3,060 3,060 MRI Exams 2,884 2,884 3,151 3,151 Total MRI Volume 2,800 ESTIMATED NET REVENUE PER PROCEDURE MRI Exams 500 s 515 530 546